SALES TAX

[misstax]

HOW DO I REPORT SALES TAX I COLLECTED FROM CUSTOMER ON SCHEDULE C.  WHAT LINE DO I SHOW THE SALES TAXES I COLLECTED AND PAY TO THE STATE OF GEORGIA? MY TOTAL SALES WAS $150K GROSSM BUT I PAID 7% TO THE STATE DEPARTMENT OF REVENUE? WHERE ON THE SCHEDULE C DO I DEDUCT THE 7% SENT TO THE GEORGIA DEPARTMENT OF REVENUE?

[Mike9241]

sales tax collect is not your income so technically you do noy report it as income and thus do not take your payments as an expense. Realistically, it depends on whether or not the 1099s the business gets includes them. if the 1099s do include sales tax, due to IRS matching, include the amount in sales and then take an offsetting deduction for the amount included.    some states offer a discount for submitting sales tax forms. that is business income. include on line for other income

[misstax]

It is included on the 1099-K so do I take it off on line 23 of Schedule C as taxes paid of just put it under other expenses?

[RobertB4444 · Accepted solution]

It is taxes paid as long as it is not already deducted from your income on the 1099-K that you received.  If it is already deducted from your income then you already got credit for it and you would not enter it again.

@lorrainerollins1972 

[misstax]

I BOUGHT A 10 X 10 STAND ALONE UTITILITY SHED WHICH I STARTED USING AS AN OFFICE SPACE IN 2024. WOULD I DEPRECIATE IT AS A NON-RESIDENTIAL REAL ESTATE ON MY TAX RETURN. I SET IT UP ON MY PROPERTY IN THE BACK. I ALSO HAD SOME DAMAGES TO IT FROM THE HURRICANE LAST YEAR. REPLACED WINDOWS FOR $900, FIXED ROOF FOR $2500, REPLACED FLOOR FOR $2110. IT'S MY FIRST TIME USING THE BUILDING IN 2024. I'M NOT SURE HOW I CAN DEDUCT THOSE EXPENSES. THE COST OF THE BUILDING WAS $15000. CAN I EVEN CLASIFY THIS AS A PIECE OF REAL ESTATE. IF NOT, HOW CAN I INCORPORATE THIS BUILDING ON MY TAX RETURN?